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Analysing the Impact of ENERGY STAR Rebate Policies in the US

Author

Listed:
  • Souvik Datta

    () (Centre for Energy Policy and Economics (CEPE), Department of Management, Technology and Economics, ETH Zurich)

  • Massimo Filippini

    () (Centre for Energy Policy and Economics (CEPE), Department of Management, Technology and Economics, ETH Zurich and Department of Economics, University of Lugano, Switzerland)

Abstract

In this paper we estimate the impact of rebate policies in various US states on the share of sales of ENERGY STAR household appliances between 2001 and 2006. We use a difference-in-difference approach to exploit the variation in the rebate policies over time and across US states to estimate their effect on the share of sales of ENERGY STAR household appliances. To account for the possibility of an endogenous rebate policy we use an instrumental variables approach in a fixed effects panel data regression model. Results suggest that rebate policies increase the share of sales of ENERGY STAR household appliances by around 7.4% and this represents an impact of around 21% on the mean level of the share of sales of ENERGY STAR household appliances in the US between 2001 and 2006.

Suggested Citation

  • Souvik Datta & Massimo Filippini, 2012. "Analysing the Impact of ENERGY STAR Rebate Policies in the US," CEPE Working paper series 12-86, CEPE Center for Energy Policy and Economics, ETH Zurich.
  • Handle: RePEc:cee:wpcepe:12-86
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    File URL: http://www.cepe.ethz.ch/publications/workingPapers/CEPE_WP86.pdf
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    References listed on IDEAS

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    1. Faiers, Adam & Neame, Charles, 2006. "Consumer attitudes towards domestic solar power systems," Energy Policy, Elsevier, vol. 34(14), pages 1797-1806, September.
    2. Datta, Souvik & Gulati, Sumeet, 2014. "Utility rebates for ENERGY STAR appliances: Are they effective?," Journal of Environmental Economics and Management, Elsevier, vol. 68(3), pages 480-506.
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    4. Brown, R. & Webber, C. & Koomey, J.G., 2002. "Status and future directions of the Energy Star program," Energy, Elsevier, vol. 27(5), pages 505-520.
    5. Besley, Timothy & Case, Anne, 2000. "Unnatural Experiments? Estimating the Incidence of Endogenous Policies," Economic Journal, Royal Economic Society, vol. 110(467), pages 672-694, November.
    6. Webber, C. A. & Brown, R. E. & Koomey, J., 2000. "Savings estimates for the E S(R) voluntary labeling program," Energy Policy, Elsevier, vol. 28(15), pages 1137-1149, December.
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    8. McWhinney, Marla & Fanara, Andrew & Clark, Robin & Hershberg, Craig & Schmeltz, Rachel & Roberson, Judy, 2005. "ENERGY STAR product specification development framework: using data and analysis to make program decisions," Energy Policy, Elsevier, vol. 33(12), pages 1613-1625, August.
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    Citations

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    Cited by:

    1. Olsthoorn, Mark & Schleich, Joachim & Gassmann, Xavier & Faure, Corinne, 2017. "Free riding and rebates for residential energy efficiency upgrades: A multi-country contingent valuation experiment," Energy Economics, Elsevier, vol. 68(S1), pages 33-44.
    2. repec:eee:rensus:v:77:y:2017:i:c:p:617-635 is not listed on IDEAS
    3. Benjamin Volland, 2016. "Efficiency in Domestic Space Heating: An Estimation of the Direct Rebound Effect for Domestic Heating in the U.S," IRENE Working Papers 16-01, IRENE Institute of Economic Research.

    More about this item

    Keywords

    Residential appliances; ENERGY STAR; Rebate policies; Difference-in-difference;

    JEL classification:

    • D - Microeconomics
    • D1 - Microeconomics - - Household Behavior
    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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